I still believe the market is far ahead of the underlying fundamentals. If one reads Chamber's comments, he spoke to taking market share from competitors but I feel it's all a bigger share of a smaller pie fundamentally. CSCO was not upbeat on current / future business prospects.
FWIW .... bolding added ....
JDS Uniphase Sees 'Bright Future'
Despite Slow Orders Amid Slump
A WALL STREET JOURNAL ONLINE News Roundup
JDS Uniphase has a "very bright future" despite a "very difficult present," in the struggling market for
telecommunications equipment, JDS Chief Financial Officer Anthony Muller said.
"Customers are still working through inventories that are higher than they'd like to have them," and, as
a result, JDS is not receiving repetitive orders, Mr. Muller told investors at a Salomon Smith Barney
conference Tuesday.
The company, which maintains dual headquarters in Ottawa and San Jose, Calif., wouldn't affirm or comment on its earlier financial projections but did mention that it had expected sales to fall between 10% and 15% in the quarter ended in December, and again in the March quarter.
The company said it now expects it will not need sales of $350 million a quarter to break even. JDS's most recent projections call for $280 million to $296 million in revenue for the quarter ended in December and $238 million to $267 million quarter ending in March.
JDS's cash supply declined in the quarter ended in December because the company paid $100 million to International Business Machines Corp. as part of the currency to acquire an optical-transceiver business in
hopes of breaking into the market making components for corporate computer networks. JDS Uniphase reiterated it expects the new business, which cost a total of $340
million in cash and stock, to bring it $18 million or $19 million in revenue in the March quarter.
Mr. Muller said IBM on Monday sold 26.9 million shares of JDS it had received as part of the deal with "no effect" on JDS's share price. JDS shares fell 31 cents to $9.71 at 4 p.m. Monday on the Nasdaq Stock Market on volume of 84.6 million shares, more than double the average volume of 34
million shares.
Tuesday, JDS shares fell eight cents to $9.63, on more normal volume of 36.2 million shares.
JDS executives also said the company is spending $50 million a quarter in product development.
Last week, rival fiber manufacturer Corning Inc. disclosed it was reopening certain plants in what some investors took as a sign of a spark in demand for fiber and a possible uptick in the supply market. |
